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The Rework Podcast

Roles at the company, staying involved as a founder & other listener questions

33 min episode · 2 min read
·

Episode

33 min

Read time

2 min

Topics

Career Growth, Productivity, Startups

AI-Generated Summary

Key Takeaways

  • Eliminated roles: 37signals operates without project managers, middle management, salespeople, in-house legal, or business development. These roles create work that pulls productive employees into unnecessary projects rather than adding value, reducing overall company capability and speed.
  • Designer implementation: Designers at 37signals write all their own HTML, CSS, and JavaScript. Two-person teams (one designer, one programmer) can take features from concept to production independently, creating faster feedback loops and higher job satisfaction than specialized handoff processes.
  • Hire when it hurts: New roles require ten concrete tasks the person will complete in month one, not fuzzy anticipatory needs. Speculative hiring for future growth creates overhead and invented work, while pain-based hiring ensures immediate value and prevents premature complexity.
  • LLC profit sharing: 37signals uses an LLC structure with profit sharing and a 10% liquidity pool for employees based on tenure, avoiding complicated equity cap tables. This works when not raising venture capital or underpaying employees with equity promises.

What It Covers

37signals cofounders Jason Fried and David Heinemeier Hansson explain their unconventional company structure, including which roles they eliminated, why designers code their own work, and how they structure equity without traditional venture capital.

Key Questions Answered

  • Eliminated roles: 37signals operates without project managers, middle management, salespeople, in-house legal, or business development. These roles create work that pulls productive employees into unnecessary projects rather than adding value, reducing overall company capability and speed.
  • Designer implementation: Designers at 37signals write all their own HTML, CSS, and JavaScript. Two-person teams (one designer, one programmer) can take features from concept to production independently, creating faster feedback loops and higher job satisfaction than specialized handoff processes.
  • Hire when it hurts: New roles require ten concrete tasks the person will complete in month one, not fuzzy anticipatory needs. Speculative hiring for future growth creates overhead and invented work, while pain-based hiring ensures immediate value and prevents premature complexity.
  • LLC profit sharing: 37signals uses an LLC structure with profit sharing and a 10% liquidity pool for employees based on tenure, avoiding complicated equity cap tables. This works when not raising venture capital or underpaying employees with equity promises.

Notable Moment

Jason Zimdars and David spent six hours designing and implementing new product features together in real-time, making progress that would take other teams several days due to handoff delays between separate design and implementation roles.

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Episode Transcript

Welcome to Rework, a podcast by thirty seven Signals about the better way to work and run your business. I'm Kimberly Rhodes joined by the cofounders of thirty seven Signals, Jason Fried, and David Heinemeier Hanssen. This week, we are gonna knock out some listener questions that we've gotten over the last couple of months. So I'm gonna start with an email from Mariana who says, I'm interested to know what are all the non programming roles inside thirty seven signals. Like, what are some roles that common companies have that you don't, and how do you manage to survive without them? So this is kind of like a two part. What roles do we have and also what roles do we not have? Well, I'll start with the things we we don't have that you would notice probably if you're working somewhere else. So we we don't have any dedicated managers who just do management work. So we don't have project managers, which should probably be a surprise to to many people, especially since we make project management software. But the software we make is made so people can run their own projects. So it's it's it doesn't require project managers necessarily. We do have people who oversee things at a high level, but there's not a project manager dedicated to each project, for example. There's no middle management. We've tried some of these things in the past. We've had some of these positions in the past, but we don't have any right now. So I think that would be probably what you mostly would would notice that, like, everybody here is actually doing the thing that they're hired to do, and there's not this extra layer. You would also not see a lot of meetings, which, of course, are not roles, but they, in many ways, sort of are roles in most companies. We we don't have a lot of those hanging around. We don't have a data scientist or a a data person. We have in the past. We don't now. Actually, we have sort of a a head of finance who does some of that work, so it's sort of he's able to do a few different things versus just have someone dedicated to that role. I was gonna say we don't have a recruiter, but we kinda do, although not really because we don't hire that much anymore. She sort of moved over into more people ops stuff. One of the ones I was gonna say that we don't have that I think people might be surprised. I know you guys have talked about a lot, but we don't have have any sales people. Like, there's not a sales team. Right. Of course. Yeah. I forgot about that. We we don't have we don't have sales. We do have one person who runs marketing, but we don't have any sales, at all. Our products are self-service, self self purchase, self cancel, all that stuff. Customer …

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